Is it possible that the widely reported reception issues of the iPhone 4 have been completely overblown? Sure, but there’s no denying the fact that a problem does exist, whether it is in fact due to a software or hardware flaw. And with every major news outlet jumping on the story, potential buyers (like those in Canada are who are eagerly awaiting for its launch by the end of July) could have taken a “wait and see” approach before taking the plunge. So to take a better look at the real-world effects of using the phone, Engadget have reached out to some of the tech experts (as well their own stuff) and asked for their experiences while using the iPhone 4. Here’re what David Pogue and John Gruber have to say:

David Pogue, New York Times (New York City): “I’ve held the phone in the forbidden position maybe 25 times, in different locations, and I’ve only ever seen the bars drop twice. I think it’s heavily dependent on where you are and how the signal strength is. (And once, I saw the bars go UP…) Overall, though, I agree with the consensus that reception is generally better than on the older iPhones — even with the Death Grip issue.”

John Gruber, Daring Fireball (Philadelphia): “At home in Philly, I’ve had nothing but good reception, no matter how I hold the phone. Data performance is better than on a 3GS right next to it, even while holding the 4 with my skin bridging the infamous gap.

Surprisingly, the majority haven’t had a single dropped call, and aside from the drop in signal bars while holding the iPhone 4 “the wrong way”, reception hasn’t been as big a deal as its been made out to be. Could it be then that Apple weren’t lying when they said the incorrect display of the signal bars is the sole reason behind all this hoopla?

After selling more than 1.7 million iPhone 4s in its first 3 days, Apple’s latest mobile wonder has certainly not been getting much love after the widely publicized reports of dropped calls and reception issues when the antenna is covered by the hand. Apple countered by saying that it’s not a hardware (design) issue and that a software fix will be coming in a few weeks. Now Consumer Reports is giving the dreaded “Not Recommended” to the iPhone 4 after testing 3 different handsets in a controlled environment and finding signal-loss whenever a hand or finger touches the bottom left side of the device.

The iPhone 4′s antenna issue has been well documented online over the past 48 hours. Users are losing signal strength if the phones are held in a certain way, namely if the bottom-left corner (or quite simply, the antenna) is covered by the naked flesh. Interestingly enough, Steve Jobs responded to a user’s email regarding this troubling matter with a simple “Just avoid holding it that way“.

Well it appears that even Hitler is having iPhone 4 reception issues. Michael Ingram, Jr. has created a hilarious video of Hitler going bonkers over dropped calls. This “Downfall” parody is probably the best of the bunch and certainly one of my favorites to date. Check out the full vid after the break!